Answer:
Customs union.
Explanation:
Economic integration can be defined as a strategic trade arrangement between countries to eliminate or mitigate trade barriers, as well as coordinate fiscal and monetary policy among its members.
Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time. There are different types of market or trade bloc used in economic integration and these includes;
I. Political union.
II. Free trade area.
III. Common market.
IV. Economic union.
VI. Customs union.
A customs union can be defined as an agreement between a group of states (two or more neighboring countries) to minimize or eliminate customs duty, remove trade barriers and adopt a common external tariff on imported goods outside the union.
Hence, a customs union is established to reduce or eliminate internal tariffs while adding a common external tariff on products imported from countries outside the group in order to allow free trade among themselves.
Answer:
Customs union.
Explanation:
A Customs union has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group.
